IBM Study: AI Agents to Transform Business Workflows by 2025

Published Date : 10/06/2025 

Executives anticipate an 8x surge in AI-enabled workflows by 2025, driven by improved decision-making, cost reduction, and competitive advantages. 

A new study by the IBM Institute for Business Value reveals a significant shift in how businesses view and implement artificial intelligence (AI) agents. The study, which surveyed 2,900 executives globally, indicates that AI-enabled workflows are expected to grow from 3% today to 25% by the end of 2025. This surge is driven by the belief that AI agents will improve process efficiency, reduce costs, and provide a competitive edge.

The survey also highlights that 64% of AI budgets are now allocated to core business functions, signaling a move from experimental to strategic AI deployment. Over two-thirds (69%) of executives surveyed identified 'improved decision-making' as the top benefit of agentic AI systems.

Francesco Brenna, VP & Senior Partner, AI Integration Services at IBM Consulting, emphasized the importance of re-architecting processes to fully leverage AI. He stated, “This isn't about plugging an agent into an existing process and hoping for the best. It means re-architecting how the process is executed, redesigning the user experience, orchestrating agents end-to-end, and integrating the right data to provide context, memory, and intelligence throughout.”

The study outlines several key benefits of agentic AI systems:

1. Over two-thirds (69%) of executives surveyed say ‘improved decision-making’ is the number one benefit of agentic AI systems.

2. 67% of those surveyed cite ‘cost reduction through automation’ as a benefit.

3. Almost half (47%) of leaders surveyed indicate ‘competitive advantage’ as a top benefit of agentic AI systems.

4. ‘Scaled employee experience’ is cited as a top benefit, according to 44% of executives surveyed.

5. 42% of those surveyed indicate that ‘improved talent retention’ is another major benefit to implementing agentic AI systems.

Despite the numerous benefits, concerns around data (49%), trust issues (46%), and skills shortages (42%) remain barriers to AI adoption. These concerns highlight the need for organizations to address data security, build trust in AI systems, and develop the necessary skills to effectively implement and manage AI technologies.

Other key findings from the study include:

- AI investment has grown to about 12% of IT spend in 2024, with expectations to increase by over two-thirds to 20% of IT spend by 2026.

- 64% of AI budgets are now spent on core business functions, underscoring AI's transition from an experimental phase to a critical part of business strategy.

- The proportion of organizations relying on an ad hoc approach to AI has declined from 19% last year to just 6% today, indicating increased confidence and commitment to AI-driven transformation.

- One in four companies surveyed are already using an 'AI-first' approach, with 52% of revenue growth and 54% of operating margin improvements attributed to AI initiatives in the last 12 months.

The IBM Institute for Business Value, IBM's thought leadership think tank, conducted the study in partnership with Oxford Economics. The insights were derived from two surveys: the 'AI at the core survey' (2,500 executives across 18 industries and 19 regions) and the 'Agentic AI pulse survey' (400 C-suite executives across 15 roles, 11 industries, and 6 countries). The study explores AI's current role in business operations, including its impact on revenue, profitability, productivity, and resource efficiency.

IBM, a leading provider of global hybrid cloud and AI, and consulting expertise, is committed to helping clients capitalize on insights from their data, streamline business processes, and gain a competitive edge in their industries. With a focus on trust, transparency, responsibility, inclusivity, and service, IBM continues to drive innovation and deliver open, flexible solutions to its clients.

To view the full study, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/agentic-ai-profits. 

Frequently Asked Questions (FAQS): 

Q: What is the expected growth of AI-enabled workflows by 2025?

A: AI-enabled workflows are expected to grow from 3% today to 25% by the end of 2025, according to the IBM study.

Q: What are the top benefits of agentic AI systems?

A: The top benefits include improved decision-making, cost reduction through automation, competitive advantage, scaled employee experience, and improved talent retention.

Q: What percentage of AI budgets are now spent on core business functions?

A: 64% of AI budgets are now spent on core business functions, indicating a shift from experimental to strategic AI deployment.

Q: What are the main barriers to AI adoption?

A: The main barriers to AI adoption include concerns around data security, trust issues, and skills shortages.

Q: How much of IT spend is expected to be allocated to AI by 2026?

A: By 2026, it is expected that 20% of IT spend will be allocated to AI, up from 12% in 2024. 

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